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Overview

Gold, silver and copper were 2013’s most price-battered metals, reported PricewaterhouseCoopers. The worst-performing was silver, with a 40-percent price plunge.

Falling commodity prices and mining cutbacks will bring lower supplies and higher prices in 2015 or 2016. Ramos, head of Latin American economics at Goldman, said marginal production costs are expected to rise and supply to suffer from less investment and fewer projects, The International Copper Study Group forecast global refined copper production up 3.9 percent in 2013 and 5.5 percent in 2014, bringing a market surplus of 387,000 and 632,000 tonnes.

The U.S. Federal Reserve announced a gradual reduction in its monthly bond-buying stimulus pro-gram. It strengthened plans to hold short-term interest rates near zero while high unemployment and low inflation persist, and beyond. Gold fell, but the an-nouncement lacked seismic market effects.

The U.S. economy grew at a 4.1-percent annual pace in quarter three, the strongest in two years. No-vember housing starts surged 22.7 percent whilst previ-ously-owned home sales slipped 4.3 percent on-month. Cars and trucks sold at a 16.3-million annual rate, the fastest since 2007. Durable-goods orders jumped 3.5 percent on-month. U.S. factory production climbed 0.6 percent in November and industrial output jumped a substantial 1.1 percent. Consumer prices were unchanged on-month, but rose on-year at an annualized 1.2 percent.

Former President Michelle Bachelet, a moderate socialist, won the Chilean presidency decisively and begins her four-year term in March. She promised social reforms, with a corporate-tax hike, but analysts expect no radical shifts.

BHP Billiton plans to slash spending from $22 billion to $15 billion. Rio Tinto said it would reduce capital spending from 2012’s $17 billion to less than $11billion in 2014 and $8 billion in 2015. It sliced more than $2 billion from 2013 operating costs and expects to cut another $3 billion in 2014.

China’s preliminary December flash Mar-kit/HSBC Purchasing Managers' Index (PMI) fell marginally to 50.5 from November's final reading of 50.8, above the 50 expansion mark for a fifth month. Growth in China's factory output and investment eased slightly in November, as retail sales expanded at the year’s strongest rate.
Anglo American left its 50-percent partnership in the Pebble Mine in Alaska, leaving Northern Dynasty with the proposed gold-copper project near Bristol Bay. Anglo expects a $0.3-billion impairment charge.

The UK economy is growing faster than esti-mated. The government said gross domestic product rose 0.8 percent July-to-September on-quarter. But underlying public-sector net debt rose to 76.6 percent of GDP. Bank of England Governor Mark Carney said the improved economy needs more-robust global recovery. BMW said it will hire 1,000 permanent employees for its four UK plants.